Hermès leather sales up +12% in Q2

Worldwide

Published: 24 July, 2017

The French luxury Group's consolidated revenues amounted to €2,713 million in the first six months of 2017, up +11% at current exchange rates and +10% at constant exchange rates, while its stores posted a solid increase in sales (+11% at constant exchange rates), in all geographical areas.

According to Hermès, growth was sustained in the second quarter of 2017 (+9% at current exchanges rates and +8% at constant exchange rates), “which confirms the strength year after year of Hermes’ business model”. During the first six months 2017, revenue rose in all the geographical areas worldwide. Asia excluding Japan is reported to have pursued great progress (+14%), driven particularly by continental China, while sales in Japan increased 3%, despite the strengthening of the yen. Sales increased +9% in America and +7% in Europe, which is said to have particularly benefitted from store openings and extensions in Rome in October 2016, and London and Munich in March this year.

Growth in the Leather Goods and Saddlery category increased +12% in the quarter, and “was sustained thanks to the success of the collections and the diversity of models” as well as by the sustained pace of production and the increase in capacities at the three new sites located in the French regions of Charente, Isère and Franche-Comté. In June 2017, the Group opened another two new production sites in France; the Maroquinerie de Normandie and the Ganterie-Maroquinerie in Saint-Junien.

The Ready-to-wear and Accessories division reported a +10% sales increase, driven by the success of the ready-to-wear collections as well as jewellery accessories and shoes. The Watches business line is said to have showed a slight upturn in the second quarter, but reported an overall -1% decline in sales in the period, attributed to a “still challenging market”.